Shippers switch to expensive air freight due to US port congestion

Research into current US West Coast port congestion by maritime advisory company, Drewry, indicates that shippers are paying high prices to switch their transport from ocean to air for the holiday season.

The diversions are generating expensive costs because air rates are at their seasonal highpoint of the year and the addition of cargo, usually moved by sea, is increasing demand.

The report said: “Congestion on the US West Coast ports is a costly reminder to shippers of the need for risk planning, particularly in peak seasons. The issue will help to inflate air rates and demand temporarily, but it will not reverse the longer-term trend towards ocean.”